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Down-payment assistance to first-time homebuyers in CA 

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Down-payment assistance to first-time homebuyers in CA

Nanda & Jimmy Dozier

We are real estate agents servicing all the areas around Lake Tahoe, in both California and Nevada.Selling a home in today’s market can be challengi...

We are real estate agents servicing all the areas around Lake Tahoe, in both California and Nevada.Selling a home in today’s market can be challengi...

Jun 6 3 minutes read

CA Forgivable Equity Builder Loan 


The spring home buying season is getting into full swing but many thousands of aspiring home buyers have unfortunately found themselves priced out of the market. You've been working hard for a few years to save money for a down-payment and closing costs, just to be faced with rising home values, and rising interested rates. Now you feel hopeless and that your dream of homeownership has been pushed away. Know that there's a new program out there that can help first home buyers just like you to afford a home.

We're talking about the Forgivable Equity Builder Loan program through CAHFA (California Housing Finance Agency). This program gives first-time homebuyers a head start with immediate equity in their homes via a loan of up to 10% of the purchase price of the home. The loan is forgivable if the borrower continuously occupies the home as their primary residence for five years. Keep reading to learn more.

Review the guidelines below for both Borrower and Property Requirements to determine if you may be eligible to apply for the Forgivable Equity Builder Loan. 


Borrower Requirements

  • Be a first-time homebuyer.
  • Occupy the property as a primary residence.
  • CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
  • Meet county income limits set by Fannie Mae. (It seems that the income limit for homebuyers in South Lake Tahoe is $72,720)
  • Contact one of their Preferred Loan Officers for more details.


Property Requirements

  • Be a single-family, one-unit residence, including approved condominium/PUDs
  • Guest houses, granny units and in-law quarters may be eligible
  • Manufactured housing is permitted
  • Condominiums must meet the guidelines of the first mortgage


The Forgivable Equity Builder Loan has an interest rate of zero percent, although you may have to pay back a portion of the loan if you occupy the home for less than five years.  Interest rates on the CalHFA first mortgage will vary depending on your financial circumstances, lender fees, and other factors.


For more information about this loan and how to apply, click here to visit their website.


Buying a Home? 

If you're looking to buy a home in Lake Tahoe, let us guide you trough the process and answer any questions you may have.

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